Employers use an employee’s National Insurance Category Letter when they run payroll to work out how much they both need to contribute.
Most employees have category letter A. Employees can find their category letter on their payslip.
||All employees apart from those in groups B, C, J, H, M and Z in this table
||Married women and widows entitled to pay reduced National Insurance
||Employees over the State Pension Age
||Employees who can defer National Insurance because they’re already paying it in another job
||Apprentice under 25
||Employees under 21
||Employees under 21 who can defer National Insurance because they’re already paying it in another job
Category letter X
Employers use category letter X for employees who don’t have to pay National Insurance, for example because they’re under 16.
The minimum contributions that you and your staff pay into your automatic enrolment workplace pension scheme are increasing.
Minimum contributions are increasing in two phases. The first increase must be in place from 6 April 2018 and the second from 6 April 2019.
Most employers use pension schemes that currently require a total minimum of 2% contribution to be paid. The calculation for this type of scheme is based on a specific range of earnings. For the 2017/18 tax year this range is between £5,876 and £45,000 a year (£490 and £3750 a month, or £113 and £866 a week).
This table shows the minimum contributions you must pay and the date when they must increase:
||Employer minimum contribution
||Total minimum contribution
|Until 5 April 2018
|6 April 2018 to 5 April 2019
|6 April 2019 onwards
The staff contribution rate may vary depending on the type of tax relief applied by your scheme. If you are unsure check your scheme documents.
The Pensions Regulator gives more details here
A workplace pension is a way of saving for your retirement that’s arranged by your employer.
Some workplace pensions are called ‘occupational’, ‘works’, ‘company’ or ‘work-based’ pensions.
If you change jobs
Your workplace pension still belongs to you. If you don’t carry on paying into the scheme, the money will remain invested and you’ll get a pension when you reach the scheme’s pension age.
You can join another workplace scheme if you get a new job.
If you do, you may be able to:
Ask your pension providers about your options.
If you move jobs but pay into an old pension, you may not get some of that pension’s benefits – check if they’re only available to current workers.
If you worked at your job for less than 2 years before leaving, you may be able to get a refund on what you’ve contributed. Check with your employer or the pension scheme provider.
You can find out more details about Workplace Pensions here